TECH SUPPLIER May 2020 - Market Perspective - Doc # CA45063820

Canadian Communications Service Provider Capex Spending, 2019–2020

By: Lawrence SurteesResearch Vice President, Communications

Table of Contents

Executive Snapshot

Figure: Executive Snapshot: Canadian Communications Service Provider Capex Spending, 2019–2020

New Market Developments and Dynamics



Global View

Figure: Global Telecom Service Provider Capital Expenditure, 2006–2019

Canadian Communications SPs Capital Spending in 2019

Figure: Canadian Telecom Service Provider Revenue Versus Capex (Excluding Cable Companies) Spending, 2008–2019

Figure: Canadian Telecom Services Capital Expenditure, 2006–2019

Table: Canadian Communications Service Providers Top 6 Capex Budget Variances by Company, January to December 2019 (C$M)

Figure: Canadian Telecom Provider Capex Budget Changes, 2019

Figure: Canadian ILEC Capital Intensity Ratios, 2019

Figure: Canadian Communications Service Provider Revenue and Capital Expenditure, 2008–2019

Top Investment Priorities

Industry Dynamics

Accelerated Capital Cost Tax Allowance

Assessment of Future Directions: Network Capex Drivers

Figure: The 3rd Platform Era of ICT That Enables Digital Transformation

Figure: Enabling Technologies of Industry 4.0

Communications SP Network Transformations Loom

The Need for Bandwidth and the Optical Imperative

Global IP Traffic Growth

Figure: Global IP Traffic by Device Type, 2018–2023

IP VPN and Metro Ethernet

Table: Canadian Metro Ethernet Equipment Vendors, 2019

From 100G to 400G Optical Backbones

MAREA 160G Transatlantic Cable

Table: Canadian Optical Network Providers' Equipment Vendors, 2019
Table: Major Canadian Fibre-Optic Network Route Length, 2019

Fibre-to-the-Home Programs Accelerate

Figure: Comparison of Telecom and Cable Broadband Technologies

North Fibre Loop to Be Completed

Undersea Fibre Links Proposed for Nunavut

Cloud Computing and Datacentres

Software-Defined Networks and Network Virtualization

Network Function Virtualization

Figure: Next-Generation Network Technology Building Blocks

Facebook's Next-Gen TIP Carrier Initiative

SDN Tied to Big Data and Analytics and Artificial Intelligence

Wireless Broadband at Gigabit Speed

4G LTE at Metro Ethernet Speed

Figure: Wireless Network Speed Evolution to 5G

5G, SDN, and the 3rd Platform

Figure: 5G Infrastructure Built on SDN and NFV
Figure: Comparison of Economic Benefit of New Service Deployment in Three Network Scenarios

Millimeter Wave Technology Key to 5G

Figure: Wireless 5G Millimeter Wave Frequency Spectrum

5G Spectrum Allocation Looms Large

Figure: Trade-Offs of 5G Wireless Frequency Bands
Figure: Canadian 5G Wireless Priority 1 Spectrum Release Timing, 2018–2022

Improved Latency Key Benefit of Millimeter Wave Frequencies

Figure: Wireless Latency Based on Location of Network Element

Radio Head Cell Tower Technology

Figure: Canadian Cell Sites by Carrier, October 2017–March 2020
Table: Canadian Cell Sites by Carrier, March 2020
Table: Canadian Wireless Providers' 3.5G HSPA/4G LTE Vendors

Gigabit Wi-Fi (WiGig) and Wi-Fi 6

Federal Government Supports LEO Satellites

Figure: Proposed LEO Satellite Constellations with Coverage of Canada

Capex 2020 Forecast and Assumptions

Impact of COVID-19 Pandemic

Figure: COVID-19 Impact Scenarios on Canada

Figure: COVID-19 Lockdown Day 1 Workday Impact on Network Traffic, Compared with Week Earlier

Figure: COVID-19 Lockdown Weekend 1 Impact on Network Traffic, Compared with Prior Week

Capex by Segment and Vendor Profiles

Figure: Canadian Telecom Service Provider Revenue and Capex, 2007–2020

Figure: Canadian Telecom Services Capex Annual Change, 2006–2020

Table: Canadian Telecom Capital Expenditure by Company, 2009–2020 (C$M)

Figure: Canadian Telecom Capex by Segment, 2007–2020

Figure: Canadian Wireline Versus Wireless Capex, 2007–2020

Figure: Canadian Top 5 Telecom Capital Spenders, 2006–2020

Incumbent Local Exchange Carriers

Figure: Canadian ILEC Wireline Capex, 2006–2020

Figure: Canadian ILEC and Total Capex Annual Budget Changes, 2006–2020

Figure: Canadian ILEC Wireline and Wireless Capital Intensity Ratio, 2007–2020

Table: Canadian ILEC Wireline Capex, 2009–2020 (C$M)

Bell Canada

Figure: Bell Canada ILEC Wireline Capex and Capital Intensity Ratio, 2006–2020
Figure: Bell Canada Fibre Optic Footprint, Locations Passed, 2016–2019 (M)
Figure: Bell Canada Business Markets Integrated Network Portfolio and Virtual Network Service Platform


Table: Telus Capital Expenditure by Province, 2018–2019 (C$M)


Interexchange and Competitive Local Exchange Carriers

Figure: Canadian IXC/CLEC Capital Expenditure, 2006–2020

Table: Canadian IXC and CLEC Capex, 2009–2020 (C$M)

Figure: Canadian IXC/CLEC Segment and Total Capex Annual Budget Change, 2006–2020

Zayo Canada (Formerly Allstream)

Figure: Zayo Canada (Allstream) Revenue and Capex, 2002–2020

Aptum Technologies (Formerly Cogeco Peer 1)

AT&T Global Services

Rogers Enterprise Business Unit





Figure: Canadian Wireless Capex, 2006–2020

Figure: Canadian Wireless Revenue Versus Capex, 2006–2020

Figure: Canadian Wireless and Telecom Capex Annual Budget Change, 2006–2020

Table: Canadian Wireless Service Provider Capex, 2009–2020 (C$M)

Rogers Wireless

Figure: Rogers Wireless Initial 5G Rollout, 2020

Bell Mobility

Figure: Bell Mobility 3G and 4G Network Peak Speeds, 2006–2019

Telus Mobility

SaskTel Wireless

Vidéotron Wireless


Shaw Freedom Mobile


SSi Mobile

TeraGo Networks

Cable Companies

Table: Canadian Cable Company Capex Budgets, 2009–2020 (C$M)

Figure: Canadian Cable Company Capex Spending, 2006–2020

Rogers Cable

Figure: Top 5 Canadian Telecom Capex Spenders, 2005–2020

Shaw Cable

Vidéotron Cable

Cogeco Connexion

Eastlink Cable

Canadian Communications Capex

Figure: Canadian Communications Service Provider Revenue Versus Capex, 2009–2020

Figure: Canadian Communications Services Capital Expenditure, 2006–2020

Table: Canadian Telecom Capex Spending (Including Cable) by Company, 2009–2020 (C$M)

Figure: Canadian Communications Capex by Segment, 2006–2020

Final Frontier: The Back Office

Figure: Capex Spending Infrastructure Versus Back Office, 2020

Figure: Evolution of Communications Service Provider OSS-BSS Operations and Monetization

Figure: Communications SP Transformation with Network Automation with SDN and NFV

Advice for the Technology Buyer

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